The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, continues its focus on Viksit Bharat with Yuva Shakti-driven growth, enhanced public capital expenditure of ₹12.2 lakh crore, fiscal consolidation to 4.3% deficit, and targeted reforms in healthcare, tourism, manufacturing, renewable energy, defence, and MSMEs. Key announcements include the ₹10,000 crore Biopharma SHAKTI scheme over five years to boost biologics and precision medicine, removal of basic customs duty on 17 cancer drugs and medicines for rare diseases, establishment of a National Institute of Hospitality, training for 10,000 tourist guides, customs duty exemptions for defence and aerospace components, support for renewable energy and clean-tech transitions, and measures to strengthen MSMEs and domestic manufacturing.
Industry leaders across sectors have praised these initiatives as structural enablers for innovation, affordability, self-reliance, and sustainable growth. Here are their detailed reactions:
Healthcare and Cancer Care: Biopharma SHAKTI and Duty Relief on Life-Saving Drugs
The Biopharma SHAKTI scheme aims to position India as a global hub for biologics, biosimilars, and advanced therapies, addressing rising burdens from cancer, diabetes, and autoimmune diseases. Customs duty exemptions on 17 cancer drugs and additional rare disease medicines provide immediate patient relief by reducing import costs.
Mr. Uday Deshmukh, Chairman & Founder CEO of Onco-Life Cancer Centre, welcomed the landmark moves:
“We wholeheartedly welcome the Union Budget 2026–27 and the landmark announcement of Biopharma Shakti with an outlay of ₹10,000 crore. This visionary initiative comes at a critical juncture, as India faces a growing burden of chronic and complex diseases such as cancer, diabetes, and autoimmune disorders. The proposed investment over the next five years will significantly strengthen domestic biopharmaceutical research, innovation, and manufacturing—making advanced cancer therapies more accessible and affordable. By accelerating clinical research and precision medicine while reducing import dependence, Biopharma Shakti has the potential to transform cancer care outcomes and build a truly self-reliant healthcare ecosystem for India.”
India is witnessing a steady and alarming rise in cancer cases, where late detection, prolonged treatment, and high medicine costs often lead to preventable complications and loss of life. Against this backdrop, the Union Budget’s decision to remove customs duty on 17 cancer drugs and 7 medicines for rare diseases stands out as a truly progressive and patient-first measure. Affordability remains one of the biggest hurdles in cancer care, forcing many families to delay or discontinue treatment. By reducing import duties, this move has the potential to significantly lower the cost of advanced and targeted therapies, making them accessible to a larger section of patients. For those requiring long-term or specialised treatment, this offers much-needed financial relief and renewed hope. Beyond economics, the decision reflects a compassionate approach to healthcare policy, strengthening India’s fight against cancer and reaffirming the commitment to equitable, timely, and life-saving care for every patient.
Tourism and Hospitality: Skilling, Infrastructure, and Tax Relief
The budget emphasizes tourism as a major job creator through the National Institute of Hospitality (upgrading the National Council for Hotel Management), large-scale training of tourist guides, enhancement of trekking and heritage trails, and reduction of TCS on overseas tour packages to 2% for improved affordability.
Ms. Akansha Agarwal, Co-Founder & CMO, Int2Cruises, highlighted the strategic boost:
“The Union Budget 2026 underscores the government’s strategic focus on strengthening India’s tourism sector. Initiatives such as the establishment of a National Institute of Hospitality, large-scale training of tourist guides, and the enhancement of trekking and heritage trails highlight a clear commitment to improving domestic travel experiences. At the same time, the reduction of TCS on overseas tour packages to 2% is a well-timed move that improves affordability and reinforces traveller confidence. Together, these measures are set to drive growth across both domestic and outbound tourism, promote premium travel segments such as cruises, and support the long-term development of a resilient tourism ecosystem.”
Coworking and Office Spaces: Supporting MSMEs and Emerging Hubs
Flexible workspaces are poised to benefit from MSME revival, revival of legacy industrial sectors, and growth in smaller cities.
Shesh Rao Paplikar, Founder & CEO, BHIVE Workspace, noted the opportunity:
“The coworking and managed office space industry will be well positioned to tap into a multi-million-dollar opportunity from the initiatives announced by Finance Minister Nirmala Sitharaman in the Union Budget 2026. By providing premium office spaces across cities in an affordable and flexible manner, especially for focused segments such as MSMEs, emerging economic hubs in smaller cities, and the revival of over 200 legacy industrial sectors, the shared workspace industry will become a key ally in driving this transformation.”
Renewable Energy and Clean-Tech: Alignment with Sustainability Goals
Continued thrust on renewable energy, MSME support, infrastructure, and rural empowerment supports solar and energy-efficient solutions.
Ankit Patidar, Director & CMO, Shakti Pumps (India) Limited, emphasized the alignment:
“The Union Budget 2026 reinforces India’s long-term commitment to sustainable growth, manufacturing resilience, and clean energy transition. The continued thrust on renewable energy, domestic manufacturing, MSME support, and infrastructure-led development creates a strong foundation for companies like Shakti Pumps that are deeply invested in energy-efficient and solar-powered water solutions.
The emphasis on capital expenditure, rural empowerment, and technology-driven productivity aligns closely with our mission of enabling farmers through reliable solar irrigation while reducing dependence on conventional power sources. Measures supporting MSMEs, credit access, and manufacturing ecosystems will further strengthen India’s clean-tech supply chain and accelerate adoption at scale.
As India advances toward its 2030 renewable energy targets, we see this Budget as an enabler for innovation, localisation, and expansion. At Shakti Pumps, we remain committed to supporting government initiatives, while continuing to invest in advanced engineering, smart pumping technologies, and sustainable manufacturing to drive inclusive and climate-resilient growth.”
Defence, Manufacturing, and Self-Reliance: Customs Exemptions and Global Competitiveness
Customs duty exemptions on defence and aerospace components, focus on domestic production, export promotion (including textile parks and containers), and strategic self-reliance amid geopolitical shifts.
Saurabh Bansal, Founder, Finatwork Investment, described the geopolitical context:
“Several priorities in the Union Budget are influenced by the changing geopolitical environment. Support for India’s goal of self-reliance and long-term strategic ability is indicated by the emphasis placed on domestic defence and security manufacturing. The customs duty exemptions on defence and aerospace components are an example of this focus on manufacturing for self-reliance.
At the same time, there is an effort to position Indian manufacturers more competitively in the global economy by focusing on domestic production while also focusing on exporting, including establishing textile parks, producing containers, and creating targeted export funding. These initiatives are intended to reduce pressure on tariffs from other countries and ultimately position Indian manufacturers to compete more effectively in the international marketplace.
When viewed together, these initiatives provide a clear policy framework for building resilience into supply chains, decreasing the amount of foreign dependency, and enhancing India’s manufacturing and exporting capacity during a time of uncertainty around the world.”
The Union Budget 2026-27 delivers a reform-oriented, investment-led framework that balances fiscal prudence with sectoral pushes in healthcare accessibility, tourism revival, clean energy, defence self-reliance, and MSME empowerment. These industry reactions highlight its role as a catalyst for inclusive, resilient, and globally competitive growth toward a developed India.
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